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A lessee pays a contractor $2,000 to lay hardwood floors in his apartment. Lessees rent is adjusted by the $2,000. The floor will increase the

A lessee pays a contractor $2,000 to lay hardwood floors in his apartment. Lessees rent is adjusted by the $2,000. The floor will increase the value of the apartment by $1,000. The landlords basis in the house is increased by $1,000. True/False and Explain.

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